Inflation-adjusted (real) return calculator
Convert nominal investment returns into real (inflation-adjusted) returns. See your true purchasing power gain after accounting for CPI changes.
- Free, no sign-up
- No data stored
- Reviewed 2026-08-01
Your details
Results
- Nominal return
- 8.00 %
- Inflation rate
- 3.50 %
- Nominal growth
- £21,589.25
- Real growth
- £15,305.03
- Purchasing power lost
- £6,284.22
After n years
In todays dollars
- Nominal value
- Real value
Projection
| Year | Nominal value | Real value | Purchasing power lost |
|---|---|---|---|
| 1 | £10,800.00 | £10,434.78 | £365.22 |
| 2 | £11,664.00 | £10,888.47 | £775.53 |
| 3 | £12,597.12 | £11,361.88 | £1,235.24 |
| 5 | £14,693.28 | £12,371.35 | £2,321.93 |
| 10 | £21,589.25 | £15,305.03 | £6,284.22 |
Real return note
About the Inflation-Adjusted Return Calculator
Inflation silently erodes your investment gains. This calculator converts nominal returns into real returns by subtracting the effect of rising prices, revealing your true purchasing power growth.
Enter your nominal return rate and the average annual inflation rate for the period. The tool applies the Fisher equation to compute the precise real return — not a simple subtraction but the mathematically correct adjustment that accounts for compounding.
Use this tool to evaluate whether your savings are genuinely growing in real terms, compare asset classes after inflation, or set realistic long-term financial goals based on purchasing power rather than headline numbers.
How to use the Inflation-Adjusted Return Calculator
- Enter your nominal (before-inflation) annual return percentage.
- Input the average annual inflation rate for the same period.
- Optionally specify the number of years to see cumulative real growth.
- Review the real return rate and purchasing power comparison.
- Adjust inputs to model different inflation scenarios.
Frequently asked questions
What formula is used for real return?
The calculator uses the Fisher equation: Real Return = ((1 + Nominal Rate) / (1 + Inflation Rate)) − 1. This is more accurate than simply subtracting inflation from the nominal rate, especially at higher values.
Where do I find the inflation rate?
Use your country's official CPI data. In the US, the Bureau of Labor Statistics publishes monthly CPI. In the UK, use ONS CPIH. We provide common reference values but recommend using the exact figure for your period.
Why is real return important?
A 7% nominal return with 4% inflation gives roughly 2.9% real return — your actual gain in purchasing power. Without this adjustment, you might overestimate how much your wealth is truly growing.
Can I use this for salary growth?
Absolutely. Enter your annual salary increase percentage as the nominal rate and see whether your pay is keeping up with or beating inflation in real terms.
Sources
Figures are estimates for guidance only. Always confirm with the official source or a qualified professional before acting on them.